US Futures low again

18 March 2020

Wall Street is worried as the number of cases spike in the US. All 50 states have now reported cases of coronavirus and worldwide cases top 200k mark for the first time.

DOW futures were down by 821 points, while the S&P500 and NASDAQ also were down.

The futures were in a limit-down territory, which meant that trading was halted after futures hit a 5% loss and cannot go lower.

Governments around the world are doing their best to come up with some “shock and awe” fiscal packages to support businesses.

Pound hits 35-year low

For the 7th day in a row, the sterling declined and this run was the biggest one in more than a year.

It broke the $1.20 level and the risks of it entering record-low territory are high after reaching its lowest level since 1985.

The slump happened a day after Chancellor Rishi Sunak announced a £330billion loan to help businesses affected by the coronavirus pandemic.

The GBP/USD pair remains at the mercy of the coronavirus as the absence of any major market-moving economic impact is being felt in the UK and US.

Oil prices fall for the third session in a row

Today, oil prices fell for the 3rd session and US crude futures tumbled to a 17-year low as the fuel demand outlook keeps darkening with social lockdowns imposed in many countries.

Brent crude was down by 37 cents, trading at $28.36 a barrel. A price war was started because of the evaporation of demand after the agreement on withholding supply was broken between the OPEC and the OPEC+.

Thamer al-Ghadhban, the Iraqi oil minister request help from OPEC to “urgently achieve” extraordinary meetings of the OPEC+ group to “discuss all possible ways” to rebalance the oil market.

Financial Events to watch for today

14:30 Crude Oil Inventories